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FISCAL NOTE
House Bill 373
Committee: Economic Development and
Tourism
Sponsor: Representative Jamie Kiel
Analyst: Jennifer Farish Date: 04/02/2025
House Bill 373 as reported by the Committee on Economic Development and Tourism could
decrease potential income and sales tax receipts to the Education Trust Fund and lodgings tax
receipts to the State General Fund and the Alabama Tourism Department by an undetermined
amount dependent upon the amount of rebates and tax exemptions provided to qualified
production companies pursuant to the following changes to the Entertainment Industry Incentive
(EII) Act of 2009 provided by this bill: (1) increasing the maximum production expenditure
threshold eligible for a rebate by $5 million for a total cap of $25 million; (2) providing rebates
for certain production expenditures for music albums of greater than $30,000, up to $200,000;
and (3) increasing the aggregate cap on incentives authorized by the EII Act by $10 million for
an aggregate annual cap of $30 million, for fiscal year 2026 and thereafter.
This bill would also: (1) reserve $2 million of the annual aggregate cap for the production of
music albums, with exceptions; (2) allow up to $3 million of unspent incentives to be carried
forward to the following fiscal year; and (3) require production companies to withhold and remit
a 5% estimated income tax withholding on payments made to loan-out companies for payments
to such loan-out companies to be eligible for rebate as a production expense.